Here is the detailed answer to Fairtax for those interested:
For those who find this to complex to understand, I am simply answering a question nothing more

The FairTax (H.R.25/S.25) is a proposal for changing United States tax laws to replace all federal personal income taxes, payroll taxes, corporate taxes, capital gains taxes, self-employment taxes, gift taxes and inheritance taxes with a national retail sales tax and monthly tax rebate to households of citizens and legal resident aliens. The FairTax would be levied once at the point of purchase on new goods and services. The plan would abolish the Internal Revenue Service (IRS) and create a federal "Sales Tax Bureau" to oversee collection of the tax by existing state sales tax administrations.[1] While the FairTax replaces taxes like FICA, it does not remove or change government funded programs such as Social Security, Medicare, and Medicaid.

The legislation would apply a 23% federal sales tax on the total transaction value of new retail goods and services; in other words, consumers pay to the government 23 cents of every dollar spent (sometimes called tax-inclusive). The assessed tax rate would be 30% if the FairTax were added to the pre-tax price of a good like traditional sales taxes (sometimes called tax-exclusive).[2] Today's income tax structure contains embedded tax costs in goods and services. Production prices are expected to decrease after these taxes and compliance costs are removed.[3] The FairTax is designed to be revenue-neutral — that is, it would not result in an increase or reduction in overall federal tax revenues. However, the tax rate required for revenue-neutrality is disputed.

The effective tax rate for any household would be variable due to the fixed monthly tax rebate. Monthly payments would compensate for taxation on purchases up to the poverty level.[4] This is intended to "untax" necessities and could reduce the effective rate to zero or a negative value.[2] The FairTax's allocation of the tax burden is a point of significant dispute.[5] The plan's supporters argue that it would broaden the tax base, be progressive and start taxing wealth, while opponents argue that a national sales tax would be inherently regressive and would decrease tax burdens paid by high-income individuals.[4] The FairTax is expected to have positive ramifications for tax burden visibility, tax compliance cost (efficiency), economic growth, international business locality, U.S. international competitiveness, and could have challenges with an underground economy and the permanent repeal of income taxation